Bitcoin Holds Near $79K, Up Nearly 24% in August Despite Iran Risk

Bitcoin steadied near $79,000 Monday, showing resilience despite hawkish comments from Federal Reserve Chair Kevin Warsh that pushed up expectations for rising interest rates. Broader risk appetite was also pressured by renewed military action between the U.S. and Iran, which sent oil prices surging.

Bitcoin rose 1% to $78,763.1 by 05:26 ET, after touching an intraday low of $77,000.0. The world’s largest cryptocurrency was set to add nearly 24% in August following a major rebound rally in recent weeks.

Warsh Comments Push Up Rate-Hike Bets

Warsh, speaking at the Jackson Hole economic symposium Friday, said the central bank remained committed to its 2% annual inflation target. While he did not explicitly mention plans to hike rates, his comments were widely viewed as hawkish, with markets ratcheting up bets that the Fed will raise rates as soon as September. Traders are now pricing in a 60.4% chance of a 25 basis-point hike next month, according to CME Fedwatch.

Key nonfarm payrolls data due later this week is expected to offer more direct cues on the central bank’s plans. Higher rates typically weigh on speculative assets like bitcoin, and August’s rally was fueled chiefly by a sharp drop in Treasury yields following bond-market intervention from the U.S. Treasury.

U.S.-Iran Military Escalation Weighs on Risk

Crypto markets, in tandem with broader risk assets, were spooked by renewed U.S.-Iran military action after the two sides exchanged strikes Sunday, their first such exchange in over a month. Oil prices rose sharply on the news, adding to concerns over higher inflation and interest rates. Adding to the uncertainty, President Donald Trump threatened to strike Iran’s key oil-exporting hub at Kharg Island, while Treasury Secretary Scott Bessent flagged plans for further economic sanctions on Tehran.

Altcoins Slip but Head for a Strong August

Broader crypto prices edged lower Monday but, like bitcoin, were on pace for a strong month overall. Ether fell 0.2% to $2,448.27 and was up nearly 30% in August. XRP fell 0.8% and was up 27.5% for the month, while Solana and Cardano gained 40% and 15%, respectively. BNB slipped 0.5% but was set for a 16.6% August rise.

August’s biggest monthly gainers include:

• Solana: up roughly 40% for the month
• $TRUMP: set to add nearly 67% in August
• Ether: up nearly 30% in August

Among memecoins, Dogecoin and $TRUMP fell 1.9% and 6.9%, respectively, on the day. Dogecoin was still up 17.6% in August, while $TRUMP remained on track for its outsized monthly gain despite the daily pullback.